The council's finances have been in a tailspin since new accounting standards were introduced, which create a clearer picture of the region's infrastructure crisis.

The nationwide accounting standards have forced the council to revalue its roads, parks and footpaths, among other infrastructure, not on the original construction cost but on the construction cost at today's prices.

The new guidelines paint a more realistic picture of the council's financial position but makes for sobering reading.

By 2011-12, the forecast $8.6 million surplus will become an estimated $13.2 million deficit.

In the 2010-11 year, the estimated $6.7 million surplus will have dropped to a $15.1 million deficit.

The council's estimates are likely to get worse. It has still not measured the value of its bridges, roads, stormwater and drainage infrastructure using the new guidelines.

Wollongong general manager David Farmer said the new figures showed the real extent of the crisis.

"By understanding the true extent of the issue, we can take steps to address it," he said.

Last year Mr Farmer introduced an stringent budget aimed at addressing the backlog in infrastructure maintenance.

The budget led to increased charges across almost all the services and cuts to the staffing levels.

But any gains have now been undermined by the new accounting standards, with little hope of getting on top of the backlog in the near future.

"We got to this problem point after 50 years; we are not going to get out of it in two years," Mr Farmer said.

The issue has affected councils across the country, but because of Wollongong's size, geography and age of infrastructure, the issue is particularly pronounced.

"It is unrealistic to expect us to fix it in a short space of time," Mr Farmer added.